Royal Enfield may surpass orders beyond production capacity

Written By Unknown on Jumat, 02 November 2012 | 21.03

Royal Enfield today said it may surpass orders beyond its 1.5 lakh production bike capacity next year. "The combined capacity with the Chennai new plant will be 1.5 lakh units and it might get exhausted in 2013 if our current growth rate continues," Venki Padmanabhan, CEO of Royal Enfield, which is a part of Eicher Motors, said at the last phase of the roadshow of Thunderbird 500.

"The new plant is on 50 acres and so we can add capacity at ease with a new line beyound 1.5 lakh units as and when needed," Padmanabhan said. He said in the last three months the company was growing at 50 per cent and he expected it to maintain it in the months to come.

"Till October the company sold 82,000 units. In the 2012 we expect to sell one lakh units against 75,000 units in 2011," he said. The new Chennai plant will be operation by first quarter of 2013 calender year with total investment in manufacturing at Rs 150 crore. The company is pinning hope in the Thunderbird brand that accounts for just 10 per cent of sales in the years to come.



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